RE:RE:anyone think CJ will announce a dividend on Nov 4 2021 ? So got some quick maths using a writer on Seeking Alpha's recent projections... Someone better than me might be able to clean this up and make it better.
Shares outstanding = 150.3 million
Free Cash Flow Projection at $70/barrel = 70-80 million (I'm using 75m for these purposes)
75m divided by $70/barrel = 1.071 times let's say average $80/barrel = 85.68m of potential free cashflow
85.68m divided by 150.3m (shares) = $0.57 Free Cash flow per share
$0.01/month dividend x 12 = $0.12/year
$0.12 divided by $0.57 = 21.05%
So what I'm trying to project is that a 1 cent per month dividend announcement would only cost 21% payout ratio of free cash flow which seems extreamly safe. I would almost expect 2-3 cents per month which would still be lower than the 3.5 cents pre 2019.
I gotta say I'm super excited for this to start paying out again as I've held for a couple years now (unfortunately I haven't added at the lower prices which was my own issue) but also when it crosses the $5 price range my marginable rate goes from 50% to 70%. (Most major banks require a stock to be above $5 and be on a list for margin, the regular regulatory requirements are $2, there are other regulatory requirements to be on a list for margin)